Blockchain at layer 1 Chia, a company that uses Chialisp as its proprietary programming language, has submitted a confidential application for an Initial Public Offering (IPO) in order to go public.
Blockchain was developed in 2017 by Bram Cohen, the inventor of BitTorrent, who also founded Chia Network in Delaware. Chia Network announced on Friday that the blockchain company had submitted a draft registration statement on Form S-10 to the Securities and Exchange Commission of the United States (SEC) in confidence for the purpose of proposing the “IPO of its common stock.”
Following the press release, XCH, the native token of the Chia Network, surged more than 16.3% on Friday. Nevertheless, the XCH token is trading higher with 12.2% overnight gains while the current price is at the $46.28 mark.
Chia is currently ranked 122 among all cryptocurrencies on Coinmarketcap, with a $326.2 million market cap for the entire Chia network. A 355% increase in trading volume to $28.4 million indicates rash XCH token purchases.
The size and price range of the company’s initial public offering don’t appear to have been determined yet. After the SEC has finished its review, Chia may begin its IPO, pending market and other conditions.
The newest “proof of space and time” algorithm is used by Chia’s blockchain to validate transactions.
According to CoinMarkCap data, Chia Network raised $61 million in funding in May 2021.
In a similar vein, Chia has already made clear on its official website that it intends to become a publicly traded company on the NYSE or NASDAQ, as well as subject to public reporting, which it does. 1934 Security Act.
As media outlet Bloomberg reported, Gene Hoffman, the CEO and President of Chia said “We believe the SEC is sincere in their desire for projects to come in and register, so here we are.”
In the context of the IPO, Hoffman stated, “We’re serious about compliance and transparency, and we’ve chosen this path because we believe it’s the right thing to do.”
“We are confident that XCH doesn’t constitute a security under Howey, and have proactively engaged with the SEC,” reads Chia’s blog post under the title ‘compliance’.
Compiled by Coinbold